Personal Finance

Shares of Cardtronics Pop 18% After Topping Wall Street Estimates

A person inserting a $100 bill into an ATM machine.

What happened

Shares of Cardtronics plc (NASDAQ: CATM) , the world's largest non-bank ATM operator with merchants and retailers throughout multiple countries, are up 18% as of 11:02 a.m. EDT Friday after the company released second-quarter results following Thursday's market close.

So what

The second quarter was unique for Cardtronics as it adjusted from the removal of ATMs at 7-Eleven locations in the United States. Total revenue was down 12% to $341 million, compared to the prior year, but when adjusted for the 7-Eleven removals, revenue increased 3%. Second-quarter revenue still checked in ahead of analysts' estimates that called for $324 million. On the bottom line, adjusted earnings per share checked in at $0.61, compared to analysts' estimates of $0.39 per share.

A person inserting a $100 bill into an ATM machine.

Image source: Getty Images.

"The second quarter was solid and marked by focused operational execution and continued consumer demand for our convenient services, resulting in strong adjusted free cash flow and an increase in our adjusted gross margin," said Edward H. West, Cardtronics' chief executive officer, in a press release. "Another highlight for the quarter was the growth in our same-store withdrawal transactions in the U.S., which were at their highest quarterly level in over six years."

Now what

Cardtronics will look to improve results organically through same-store growth and margins. Same-store withdrawal transaction growth was 8% during the second quarter, or 4% when adjusted for 7-Eleven migration, and adjusted gross margin moved 80 basis points higher.

10 stocks we like better than Cardtronics

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cardtronics wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 4, 2018

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CATM

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More